Ovintiv Inc. (OVV)
NYSE:OVV
Want to see OVV full AI Analyst Report?
Top Page
Ovintiv
(NYSE:OVV)
Select Model
Select Model
Rating:68Neutral
Price Target:
$63.00
â–²(19.30% Upside)
Action:Downgraded
Date:05/14/26
OVV scores positively on financial quality and outlook, led by strong cash generation, improving leverage, and supportive earnings-call execution/guidance. The score is held back by cyclical and currently compressed profitability, a neutral-to-mixed technical picture, and a negative P/E that clouds valuation optics despite a moderate dividend yield.
Positive Factors
Strong cash generation and improving free cash flow
Sustained, materially improved cash generation (operating cash flow and TTM free cash flow) provides durable internal funding for capex, debt reduction, and shareholder returns. This strengthens financial flexibility across commodity cycles and supports predictable capital allocation over months.
Negative Factors
Large non-cash impairment drove GAAP loss
A sizable non-cash impairment highlights sensitivity of reported asset values to lower SEC trailing prices and can signal potential downside to reported equity if prices remain depressed. While non-cash, it affects GAAP metrics and could constrain executive actions tied to accounting results.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and improving free cash flow
Sustained, materially improved cash generation (operating cash flow and TTM free cash flow) provides durable internal funding for capex, debt reduction, and shareholder returns. This strengthens financial flexibility across commodity cycles and supports predictable capital allocation over months.
Read all positive factors
Ovintiv (OVV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.64B
Dividend Yield3.16%
Average Volume (3M)3.83M
Price to Earnings (P/E)19.4
Beta (1Y)0.59
Revenue Growth-0.59%
EPS Growth32.83%
CountryUS
Employees1,623
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)3.09
Shares Outstanding281,018,620
10 Day Avg. Volume3,564,887
30 Day Avg. Volume3,831,928
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)0.90
Price to Sales (P/S)1.15
P/FCF Ratio6.70
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue2.61
Enterprise Value/Gross Profit5.55
Enterprise Value/Ebitda8.57
Forecast
1Y Price Target
$68.67Price Target Upside30.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)7.79
Revenue Forecast (FY)$9.44B
Ovintiv Business Overview & Revenue Model
Company Description
Ovintiv Inc., together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It operates through USA Operations, Canadian Operations, and Market Optimization segment...
How the Company Makes Money
Ovintiv primarily makes money by producing and selling hydrocarbons—crude oil/condensate, natural gas, and NGLs—into North American commodity markets. Revenue is largely a function of (1) production volumes from its operated and non-operated wells...
Ovintiv Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational execution, significant balance-sheet improvement, and notable cost and productivity gains (Permian and Montney outperformance, successful NuVista integration, surfactant-driven uplift, <$3.3B net debt, $634M FCF, cash flow per share beat). The principal negatives were a sizable non-cash $1.2B impairment (driven by lower trailing SEC prices) that produced a GAAP loss, higher Canadian royalty-driven volume impacts in the near term, and modest inflationary pressure from diesel. Overall, the positives—durable cash generation, deleveraging, completed integration synergies, cost leadership, and sizeable inventory—outweigh the transitory and non-cash negatives.Positive Updates
Strong Deleveraging and Liquidity Position
Net debt reduced to less than $3.3 billion with leverage under 0.8x; remaining long-term debt has no maturities before 2030; liquidity of $4.0 billion; expected >$80 million of annualized interest savings from repaid debt.
Negative Updates
Significant Non-Cash Impairment and Reported Loss
Recorded a $1.2 billion after-tax non-cash ceiling test impairment in Q1 that resulted in a reported loss for the quarter; impairment driven by weaker oil prices reducing the SEC 12-month trailing price. Management expects no further impairments at current strip pricing.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Deleveraging and Liquidity Position
Net debt reduced to less than $3.3 billion with leverage under 0.8x; remaining long-term debt has no maturities before 2030; liquidity of $4.0 billion; expected >$80 million of annualized interest savings from repaid debt.
Read all positive updates
Company Guidance
The company reiterated unchanged full‑year capital guidance and a largely ratable activity cadence while updating its capital‑allocation plan to return 50%–100% of free cash flow (having planned ≥75% for 2026 but now expecting 50%–75% if oil stays elevated, with a return to ≥75% if prices retreat), and said absolute buybacks will still exceed March expectations. Key metrics: Q1 cash flow per share was $4.62 (≈6% above consensus) and free cash flow was $634 million; Q1 capex was $605 million (low end of guidance) and Q2 capex is expected ≈$575 million; net debt was <$3.3 billion (<0.8x leverage) with $4.0 billion liquidity and >$80 million of annualized interest savings expected from early debt paydowns; a $1.2 billion after‑tax non‑cash ceiling‑test impairment was recorded in Q1 but management does not expect further impairments at current strip. Production and operating guidance: full‑year oil & condensate guidance maintained at 205–212 kbpd, Q2 company production expected ~623 kBOE/d including ~203 kbpd of oil & condensate (Q1 oil & condensate averaged ~225 kbpd, Permian ~126 kbpd); Montney specifics include Q1 gas realization at 175% of AECO, a 100 MMcf/d JKM‑linked contract that could be worth roughly $60 million at current strips for the remainder of the year, and a note that higher Canadian sliding‑scale royalties and planned plant turnarounds push Q2 Montney toward the low end of guidance (but higher condensate prices — e.g., $90/bbl — would imply ~+5 kbpd and ~+40% revenues). On costs and productivity the company cited D&C burn rates below $600/ft in the Permian and <$500/ft in the Montney, surfactant treatments at ~$100k/well with ~9% oil uplift versus untreated wells and >10% Permian oil productivity per foot improvement since 2023, NuVista integration synergies including ~$1 million per well savings and $100 million annualized cost synergies, and confidence that higher near‑term prices will accrete to free cash flow while capital plans remain unchanged.Ovintiv Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.94B | 8.74B | 9.15B | 10.88B | 12.46B | 8.66B |
| Gross Profit | 4.21B | 2.50B | 4.98B | 5.90B | 6.88B | 4.22B |
| EBITDA | 2.73B | 3.35B | 4.05B | 4.69B | 4.98B | 2.77B |
| Net Income | 771.00M | 1.24B | 1.13B | 2.08B | 3.64B | 1.42B |
Balance Sheet | ||||||
| Total Assets | 22.29B | 20.39B | 19.25B | 19.99B | 15.06B | 14.05B |
| Cash, Cash Equivalents and Short-Term Investments | 26.00M | 280.00M | 42.00M | 3.00M | 5.00M | 195.00M |
| Total Debt | 7.70B | 7.53B | 6.29B | 6.68B | 4.49B | 5.78B |
| Total Liabilities | 10.74B | 9.20B | 8.92B | 9.62B | 7.37B | 8.98B |
| Stockholders Equity | 11.56B | 11.20B | 10.33B | 10.37B | 7.69B | 5.07B |
Cash Flow | ||||||
| Free Cash Flow | 3.82B | 1.50B | 1.42B | 1.42B | 2.04B | 1.61B |
| Operating Cash Flow | 3.81B | 3.65B | 3.72B | 4.17B | 3.87B | 3.13B |
| Investing Cash Flow | -3.71B | -2.88B | -2.46B | -5.52B | -1.79B | -525.00M |
| Financing Cash Flow | -71.42M | -762.00M | -1.23B | 1.36B | -2.27B | -2.42B |
Ovintiv Technical Analysis
Neutral
52.81
Price Trends
58.13
Negative
52.08
Positive
45.58
Positive
Market Momentum
-0.18
Positive
41.18
Neutral
10.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OVV, the sentiment is Neutral. The current price of 52.81 is below the 20-day moving average (MA) of 59.18, below the 50-day MA of 58.13, and above the 200-day MA of 45.58, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 41.18 is Neutral, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OVV.
Ovintiv Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.24B | 10.26 | 20.93% | 1.00% | 23.03% | 239.04% | |
72 Outperform | $10.88B | 11.50 | 12.71% | ― | 24.26% | 323.40% | |
71 Outperform | $12.94B | 8.44 | 25.11% | 3.80% | -17.38% | 54.99% | |
69 Neutral | $16.18B | 24.16 | 6.32% | 4.27% | -1.12% | -48.40% | |
68 Neutral | $15.64B | 19.41 | 7.11% | 3.16% | -0.59% | 32.83% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $6.52B | 13.75 | 8.74% | 3.14% | -2.91% | -47.92% |
* Energy Sector Average
OVV
Ovintiv
55.81
20.96
60.16%
APA
APA
36.53
20.20
123.71%
MTDR
Matador Resources
53.83
12.11
29.03%
RRC
Range Resources
39.41
1.73
4.61%
AR
Antero Resources
35.81
-1.64
-4.38%
PR
Permian Resources
19.32
7.21
59.56%
Ovintiv Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Ovintiv Reports Q1 Loss but Strong Cash Generation
Negative
May 11, 2026
Ovintiv reported first quarter 2026 results on May 11, 2026, posting a net loss of $630 million driven largely by $1.2 billion in non-cash ceiling test impairments tied to weaker SEC oil prices, despite generating $1.1 billion in operating cash fl...
Executive/Board ChangesShareholder Meetings
Ovintiv Shareholders Reaffirm Board, Pay and Auditors
Positive
May 8, 2026
At its 2026 Annual Meeting of Shareholders held on May 6, 2026, Ovintiv reported the re-election of all director nominees with strong majorities, signaling continued investor support for the existing board. Shareholders also approved on an advisor...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Ovintiv Advances Debt Reduction With Anadarko Asset Sale
Positive
Apr 9, 2026
Ovintiv Canada ULC previously arranged a two-year term credit facility in November 2025 to help finance Ovintiv Inc.’s acquisition of NuVista Energy, which closed on February 3, 2026, and now plans to repay C$1.57 billion and terminate that ...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Ovintiv Announces Enhanced 2026 Shareholder Return Framework
Positive
Feb 23, 2026
In 2025, Ovintiv generated $3.7 billion in cash from operating activities, $1.6 billion in Non-GAAP free cash flow and average production of 615 MBOE/d, while returning about $612 million to shareholders through dividends and buybacks. It reported...
Business Operations and StrategyM&A Transactions
Ovintiv to Divest Oklahoma Oil and Gas Assets
Positive
Feb 23, 2026
On February 17, 2026, Ovintiv subsidiaries Ovintiv USA Inc. and Ovintiv Royalty Holdings LLC agreed to sell certain Oklahoma oil and gas assets for $3.0 billion in cash to MidCon II BuyerCo, LLC via the sale of equity in a newly formed Texas LLC. ...
Business Operations and StrategyM&A Transactions
Ovintiv Sells Anadarko Basin Assets to Refocus Portfolio
Positive
Feb 17, 2026
On February 17, 2026, Ovintiv Inc. announced it had signed a definitive agreement to sell its Anadarko Basin assets in Oklahoma to an undisclosed buyer for $3.0 billion in cash. The package comprises about 360,000 net acres, representing nearly al...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.